State Ex Rel. Corette v. Dept. of R

CourtMontana Supreme Court
DecidedApril 18, 1978
Docket13856
StatusPublished

This text of State Ex Rel. Corette v. Dept. of R (State Ex Rel. Corette v. Dept. of R) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Corette v. Dept. of R, (Mo. 1978).

Opinion

No. 13856 IN THE SUPREME COURT OF THE STATE OF MONTANA 1978

STATE OF MONTANA, ex rel., HOLT W. CORETTE, et al., Relators and Appellants, -VS- MONTANA DEPARTMENT OF REVENUE et al.,

Respondents and Respondents, JACK C. SEITZ, et al., Intervenors and Respondents.

Appeal from: District Court of the First Judicial District, Honorable Peter Meloy, Judge presiding. Counsel of Record: For Appellants: Milodragovich, Dale & Dye, Missoula, Montana Harold Dye argued, Missoula, Montana For Respondents: David Jackson, Helena, Montana Robert Corcoran argued, Helena, Montana For Intervenors: Garlington, Lohn and Robinson, Missoula, Montana Ronald B. MacDonald argued, Missoula, Montana

Submitted: March 7, 1978

Filed: , $4 jC . r.. jq78 M r . J u s t i c e Daniel J . Shea d e l i v e r e d t h e Opinion of t h e Court:

P l a i n t i f f s appeal from an order of t h e D i s t r i c t Court,

Lewis and Clark County, denying t h e i r p e t i t i o n t o t h a t c o u r t f o r a

w r i t of p r o h i b i t i o n and mandamus d i r e c t i n g t h e S t a t e Department

of Revenue t o d e s i s t from allowing t h e t r a n s f e r of a l i q u o r

l i c e n s e from ~ d d i e ' sClub t o t h e S i l v e r t i p Lounge and Liquor S t o r e

i n Missoula.

P l a i n t i f f s a r e Missoula r e s i d e n t s i n t h e a r e a near t h e

i n t e r s e c t i o n of Southwest Higgins and Bancroft Avenues i n

Missoula, and l i v e c l o s e t o t h e new S i l v e r t i p Lounge and Liquor

Store. I n seeking t o prevent intervenor Jack C. S e i t z from

operating t h e new lounge and l i q u o r s t o r e , p l a i n t i f f s p e t i t i o n e d

t h e D i s t r i c t Court f o r t h e w r i t .

The d i s p u t e revolves around t h e i n t e r p r e t a t i o n of s e c t i o n

4-4-203, R.C.M. 1947, which provides:

"Lapse of l i c e n s e f o r nonuse. From and a f t e r February 1, 1949, any r e t a i l l i c e n s e issued pursuant t o t h i s code *** n o t a c t u a l l y used i n a going establishment f o r a period of n i n e t y (90) days, s h a l l automatically lapse. Upon determining t h e f a c t of nonuser f o r such period the department s h a l l cancel such l i c e n s e of record and no p o r t i o n of t h e f e e paid t h e r e f o r s h a l l be refundable. * * *"(Emphasis added. )

P l a i n t i f f s contend t h a t S e i t z , i n t r a n s f e r r i n g t h e l i q u o r l i c e n s e

t o h i s new place of b u s i n e s s , d i d not do so within t h e 90 day

period and he t h e r e f o r e l o s t h i s r i g h t t o t h e l i c e n s e .

The D i s t r i c t Court issued a temporary w r i t and s e t March

4 , 1977, a s t h e d a t e f o r a show cause hearing. A t the hearing,

l i c e n s e holder Jack S e i t z and o t h e r i n v e s t o r s i n the new l i q u o r

establishment were allowed t o intervene without o b j e c t i o n from

plaintiffs. O March 29, t h e D i s t r i c t Court quashed t h e w r i t and n

dismissed t h e p e t i t i o n and p l a i n t i f f s appeal. S e i t z i s t h e holder of an a l l beverage r e t a i l l i q u o r

l i c e n s e used formerly a t Eddie's Club a t 428 North Higgins

Avenue i n Missoula. O August 9, 1976, he submitted an a p p l i c a t i o n n

t o t r a n s f e r the l o c a t i o n of t h e l i c e n s e t o t h e S i l v e r t i p Lounge,

a proposed f a c i l i t y n o t then constructed, located a t t h e i n t e r -

s e c t i o n of Southwest Higgins and Bancroft Avenues. The new loca-

t i o n was zoned t o allow a b a r and was bordered by commercial

businesses t o t h e west, apartments and o f f i c e s t o t h e south, and

s i n g l e family r e s i d e n t s on the e a s t and n o r t h .

The required s t a t u t o r y n o t i c e of t h e a p p l i c a t i o n f o r

t r a n s f e r was published, and t h e Liquor Division of t h e Department

of Revenue ( t h e l i c e n s i n g a u t h o r i t y ) conducted a hearing i n

Helena on September 10, 1976. N one appeared t o p r o t e s t t h e o

transfer. Nor did S e i t z o r any of h i s i n v e s t o r s appear a t t h e

hearing. O n September 16, 1976, t h e l i c e n s i n g a u t h o r i t y granted

t h e a p p l i c a t i o n f o r t r a n s f e r s u b j e c t t o compliance with h e a l t h

r e g u l a t i o n s and f i n a l i n s p e c t i o n .

Following t h i s c o n d i t i o n a l approval of t h e l i c e n s e t r a n s f e r ,

S e i t z and h i s i n v e s t o r s obtained financing f o r t h e purchase of

t h e property and f o r c o n s t r u c t i o n of t h e new b u i l d i n g . Seitz

continued t o operate Eddie' s Club u n t i l February 13, 1977, a t

which time he closed t h e business t o h e l p complete c o n s t r u c t i o n

of t h e new b u i l d i n g .

O n A p r i l 28, 1977, the l i c e n s i n g a u t h o r i t y inspected t h e

new premises and completed t h e t r a n s f e r of the l i c e n s e . On May

5 , 1977, S e i t z requested an extension of time f o r nonuse of t h e

l i c e n s e p a s t 90 days, pursuant t o s e c t i o n 4-4-203, because he was

not q u i t e ready t o open f o r business. A extension was granted n

from May 1 3 t o May 31, b u t S e i t z used only one day of t h e extension

before he opened f o r business on May 14. P l a i n t i f f s contend t h a t a t t h e time t h e l i c e n s e t r a n s f e r

was approved, A p r i l 28, 1977, t h e 90 day nonuse provision of

s e c t i o n 4-4-203 had already expired, and t h e r e f o r e t h e l i c e n s i n g

a u t h o r i t y had no r i g h t t o complete t h e t r a n s f e r . They argue t h e

period of nonuse commences t o run a s of t h e d a t e t h a t c o n d i t i o n a l

approval f o r t h e l i c e n s e t r a n s f e r i s obtained. Accordingly, they

contend t h e l i c e n s e automatically lapsed 90 days from September

16, 1976, t h e d a t e t h e c o n d i t i o n a l approval was granted.

Section 4-4-203 i s s i l e n t a s t o whether i t a p p l i e s t o

t r a n s f e r s of an e x i s t i n g l i c e n s e t o another place of business.

However, p l a i n t i f f s contend t h a t an a d m i n i s t r a t i v e r e g u l a t i o n

( MAC 42-2.12(6)-S1298(8)) r e q u i r e s such c o n s t r u c t i o n . That

r e g u l a t i o n provides :

"Any l i c e n s e e o r a p p l i c a n t requesting an extension of t i m e f o r non-use of a l i c e n s e *** s h a l l f u r n i s h w r i t t e n evidence, c e r t i f i e d t o be c o r r e c t , of t h e reasons f o r h i s f a i l u r e t o place s a i d l i c e n s e i n operation w i t h i n t h e time prescribed."

This r e l i a n c e i s misplaced. This r e g u l a t i o n does not apply t o

t r a n s f e r of a l i c e n s e . I t a p p l i e s only t o one who o r i g i n a l l y

a p p l i e s f o r a l i c e n s e o r one who has t h e l i c e n s e but has n o t y e t

put i t i n t o operation by a c t u a l l y commencing business. A separate

a d m i n i s t r a t i v e r e g u l a t i o n ( A 42-2.12(6)-S12013) MC specifically

covers l i c e n s e t r a n s f e r s and says nothing about t h e e f f e c t of nonuse

of a l i c e n s e while a t r a n s f e r i s pending.

To adopt p l a i n t i f f s ' argument would mean t h a t i n t h e

absence of an extension obtained from t h e l i c e n s i n g a u t h o r i t y ,

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Related

Passarella v. Board of Commissioners
64 A.2d 361 (New Jersey Superior Court App Division, 1949)

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